US stock future indexes are pointing to a lower opening (SPY -0.08%) with the Dow on track for its eighth loss in a row. A recent string of disappointing U.S. data prompted market players to push back expectations for the next U.S. rate hike. Oil prices struggled near April lows (WTI 39.80), gasoline inventories are expected to decline as investors wait for information on US stockpiles of crude.
Here is the current market situation from CNN Money
European markets are lower today with shares in London off the most. The FTSE 100 is down 0.96% while France's CAC 40 is off 0.67% and Germany's DAX is lower by 0.18%.
NEW YORK (Reuters) - Investors should cut risk by placing money in real assets and accept lower returns, given that markets no longer offer double-digit gains in a zero interest-rate environment, said Bill Gross, a portfolio manager at Janus Capital Group Inc .
LONDON (Reuters) - Oil edged higher towards $42 a barrel on Wednesday after hitting its lowest since April the previous day, supported by an industry report showing a fall in U.S. inventories and a weaker dollar.
CAPE CANAVERAL, Fla. (Reuters) - A Florida-based company won U.S. government permission on Wednesday to send a robotic lander to the moon next year, the firm's founder said, marking the first time the United States has cleared a private space mission to fly beyond Earth's orbit.
(Reuters) - Time Warner Inc reported a higher-than-expected quarterly profit as it signed up more viewers for its premium Home Box Office network, and disclosed a 10 percent stake in streaming TV service Hulu.
HONG KONG (Reuters) - Nearly 120,000 units of digital currency bitcoin worth about US$72 million was stolen from the exchange platform Bitfinex in Hong Kong, rattling the global bitcoin community in the second-biggest security breach ever of such an exchange.
NEW YORK (Reuters) - Delta Air Lines Inc is flooding the New York market with jet fuel from its refinery, sacrificing refining profits in order to lower the carrier's fuel costs, according to a company memo seen by Reuters.
On Friday July 29th, 2016, the Bureau of Economic Analysis (BEA) released the second?quarter GDP figures and revisions for prior quarters. At a disappointing annualized growth rate of only 1.20%, second quarter GDP widely missed consensus expectations of 2.50% growth. Coincidently the current 1?year average growth rate has risen at the same 1.20% and that annualized growth rate has declined for five quarters in a row.
For the most part, the recent bout of stagnant GDP data has not caught the attention of the media or the markets. As consultants to those who manage wealth we believe this data is vitally important, regardless of what others may think. Accordingly, we provide some context around this data to help you better grasp its magnitude.
The graph below plots average 1?year GDP growth on a quarterly basis going back to 1948. The blue shaded areas represent periods deemed recessionary by the National Bureau of Economic Research (NBER), and the red dotted line facilitates the comparison of the current 1.20% reading versus those of the past.
Here are four important takeaways:
All recessions since 1948 started with an average growth rate greater than the current 1.20% rate.
There are only three instances where the 1?year growth rate was below the current level and recession did not occur. In the two ...
Following June's epic bounceback in nonfarm payrolls - the biggest delta to ADP in 6 years - Zandi and his crew at ADP 'got back to work'. June's 172k print was revised higher to 176k with July's 179k print beating expectations of 170k modestly (but still well below the payrolls levels). Once again goods-producing jobs fell (down 6k) as Services dominated (+185k) as ADP warns "this month's employment number falls short of the 12-month average primarily because of slowing in small business hiring." The weakness in construction spending is echoed in ADP's reported slide in construction jobs.
ADP continues to lag payrolls with notable increase in volatility...
And the tumble in construction jobs suggests construction spending is set to notably tumble...
It wasn't the hot weather, rainy weather, or Brexit, but Kate Spade still found a convenient scapegoat on which to blame its underperformance after reporting a lower-than-expected quarterly profit as the accessories and apparel maker offered more discounts. Tourists, or rather the lack thereof.
"Several factors contributed to our second quarter results falling short of our expectations, the most impactful of which are the retail landscape and continuing tourist headwinds," Chief Executive Craig Leavitt said in a statement on Wednesday.
The company earned 11 cents per share, missing the average analyst estimate of 14 cents. However, the company expressed confidence about the future, when its COO George Carrara said that "looking ahead to the back half of the year, we are taking a prudent approach and updating our guidance accordingly. We remain confident in our long term ability to continue to achieve robust margin expansion, both in 2016 and beyond, based primarily on our ability to scale our foundation, leverage expenses, grow our licensing business and benefit from supply chain enhancements."
But not confident enough, as Kate Spade cut its full-year net sales forecast to $1.37 billion-$1.40 billion from $1.39 billion-$1.41 billion.
Kate Spade, which is known for its quirky and colorful satchels and totes, has been focusing on its luxury kate spade new york brand and investing in its online business, strategies that analysts say have helped the company fight the slowdown in the handbag market in North America. Those haven't worked to boost revenues or profits, so instead the company had to come up with the weakest excuse: the stronger dollar, which is ironic since the dollar has been roughly unchanged from a year ago.
The company has been looking to "pivot" from a pure-play handbag maker to a lifestyle brand by adding new product categories, including apparel and furniture. "Omnichannel" is s ...
Time Warner said Wednesday that it agreed to buy a 10% stake in video service Hulu, a move that comes as traditional cable companies struggle with viewers increasingly cut the cord and as Hulu prepares to launch a new live-streaming service.
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com